To my knowledge, there was never a problem with the Morrowind mods not working after patches ... so let us hope that this will also be true of Oblivion.
But Morrowind Oblivion certainly is not .... and I don't say that in a good way, I'm afraid. I for one, would have waited awhile longer until the bugs could have been worked out of Oblivion and some more Morrowindish type content that seemed almost - well vital - levitation, gloves, throwing weaponry = = = could have been tested and added.
Perhaps Oblivion will grow on me or even better, after Beth settles the question of which max from Discreet to hook up with Obliv, maybe some cool modders and modelers will bring good MW content to us in Obliv. Hope so ......